What are the HUD Income Limits?
HPD uses the HUD Income Limits to set income requirements for affordable housing. The limits come from a formula created by the US Department of Housing and Urban Development (HUD). The formula compares incomes and the cost of housing. A detailed explanation of the formula is available here For 2008, 100% of the HUD Income Limit for a family of four in New York City is $76,800 and it is $53,700 for a single person.

Why is HPD no longer using AMI?
HUD uses two ways to calculate income requirements under HUD Income Limits: one uses Area Median Income (AMI) only, the other looks at housing costs as well as AMI. In 2008 New York housing costs reached a level that moved us from using AMI only to calculate HUD Income Limits to using housing costs and AMI. It is possible that we could move back to using just AMI in future years. Whether that happens will be determined by HUD’s regulations.

$76,800 is much higher than the average income in many neighborhoods in NYC? Why can’t HPD use an income limit that reflects each neighborhood?
The income limits for affordable housing developments are set by HUD. Within that framework, HPD can target particular income groups and we consider the needs of the neighborhood as well as the economics of the development when doing so. HPD also works to find ways to finance affordable housing for income groups which are currently the most difficult to reach.  According to research conducted by HPD, in Fiscal Year 2006, three-quarters of HPD and HDC’s individual programs served low-income families, a larger share than is required by the program guidelines.  Of the low-income households that moved into their homes in FY2006, the majority were extremely low income households, with incomes less than 30% of HUD Income Limits, equivalent to $14,900 for a single person or $21,250 for a family of four.

Chart of HUD income limits 2008